Hello....guys.....accounting mcq paper....lets discuss our doubts:)

[parthrocks]

29) oct/nov 2011 : find out the difference between the marginal cost and absorption cost (12080-10080=19500), then calculate the difference between the opening and closing stock (28200-25200=3000)then divide the diference between the cost and the difference between the stock(19500/3000=6.50)
this is how the answer is "D".....

Bt how is it the differnce???

 

[vibhashi]

View attachment 9765
how come the answer for this is C exactly.........................didnt get it???help out plzzz.

26) OCT/NOV 2009 /11/: 20% reduction in activity will increase the unit cost, because fixed cost will be spread over fewer units because saving the variable cost will be increase by less than 20% hence the answer is D.

 

[Mad Gal]

View attachment 9765
how come the answer for this is C exactly.........................didnt get it???help out plzzz.

27 - this was already discussed! You have to use the high-low method! TC of the highest units - total costs of the lowest units and divide that by the hihgest - lowest units! So = (13000 - 6000)/ (24000-10000) = 0.5 which is the variable cost per unit! so this * 10000 = 5000(total var.cost) Hence TC - TVC = FC. Using these figures you can find the TC for 20000 units!

22 - substitute some values and do it. You should get D!

29 - use the profit reconciliation method. Start with the MC profit and to that adjust the change in stock level*prod.OAR. It should = to absorption cost profit. So in this case
MC profit = 100800
change in stock = 3000*x
should = 120300.
Solve the equation you should get 6.5.

 

[Mad Gal]

How come the answer for 67.jpg is C......

And what abt the answer for 88.jpg...how come it is D.....explain????



and image.png how come exactly B.....

AND THE LAST ONE THAT IS UNTITLED.JPG...HOW COME IS IT B....16000?????ANYONE PLZZZ SOLVE MY DOUBTS....PAPER 1 ACCOUNTING....AS LEVEL....EXAMS NEAR.....GOD BLESS U...THANKS EVERYONE....

27.jpg ans is B not C. Marking scheme was supposed to be wrong!

 

[parthrocks]

27.jpg ans is B not C. Marking scheme was supposed to be wrong!

What abt the others???

 

[Mad Gal]

How come the answer for 67.jpg is C......

And what abt the answer for 88.jpg...how come it is D.....explain????



and image.png how come exactly B.....

AND THE LAST ONE THAT IS UNTITLED.JPG...HOW COME IS IT B....16000?????ANYONE PLZZZ SOLVE MY DOUBTS....PAPER 1 ACCOUNTING....AS LEVEL....EXAMS NEAR.....GOD BLESS U...THANKS EVERYONE....

Are you sure 88...is D?? am getting C!

image.png was already explained right?!

untitled - see the credit sales is only 80% = 280000. and opening debtors were 46000. So the debit side of the control a/c = 326000.
On the credit side you get the cash received and discounts allowed = (303800/98)*2 = 6200. So balance the T-account you should get 16000

 

[Mad Gal]

DID YOU GET IT???

 

[parthrocks]

ya,,,,,i gt the others...thankssss...bt the last one that is untitled which u expalined before....

didnt get this as u wrote:- discounts allowed = (303800/98)*2 = 6200

 

[Mad Gal]

the question says 303800 was what the debtors paid after a discount. which means it only the net amount we're given. So we have to compute the discount allowed bit. Which is 2%. So the working above has to be done

 

[parthrocks]

the question says 303800 was what the debtors paid after a discount. which means it only the net amount we're given. So we have to compute the discount allowed bit. Which is 2%. So the working above has to be done

actually

 

[parthrocks]

HEY EVERYONE.......WHAT IS PROVISION FOR BAD DEBTS??

 

[Saad Ghori]

HEY EVERYONE.......WHAT IS PROVISION FOR BAD DEBTS??

Provision for Doubtful debts.

 

[parthrocks]

Provision for Doubtful debts.

is it not different cos its bad debts...

 

[parthrocks]

hey is it that whenver we start with an overdraft balance OF CASH BOOK....IN BANK RECONICLIATION STATEMENTS.....IT IS OBVIOUS TO GET AN OVERDRAFT BALANCE AS PER PASS BOOK...IS IT SO....HELP!!

 

[wajiman]

Bt how is it the differnce???

here is the logic:

In marginal costing, the overhead is not absorbed in the opening or closing stock figures where as in absorption costing it is. now we need to take the difference between marginal costing and absorption costing profit figures then divide them by the difference of the opening and closing stock so to find out how much difference in stock leads to difference in profit due to the overheads being absorbed. now once we divide, we can a figure of the per unit overhead absorbed resulting in the difference between the 2 profit figures. You can counter-check it by multiplying both, opening and closing stock figures with $6.5 and then take the difference between them, you will get the same difference that is $19500 as you will get when you subtract the given marginal and absorption costing profits.

Hope you understand.

Provision for Bad debts:

In layman terms, its an amount set aside to help business to face any bad debts without affecting its profits

well coming to your bank reconciliation question, it depends on the uncredited and unpresented cheques amount

 

[parthrocks]

here is the logic:

In marginal costing, the overhead is not absorbed in the opening or closing stock figures where as in absorption costing it is. now we need to take the difference between marginal costing and absorption costing profit figures then divide them by the difference of the opening and closing stock so to find out how much difference in stock leads to difference in profit due to the overheads being absorbed. now once we divide, we can a figure of the per unit overhead absorbed resulting in the difference between the 2 profit figures. You can counter-check it by multiplying both, opening and closing stock figures with $6.5 and then take the difference between them, you will get the same difference that is $19500 as you will get when you subtract the given marginal and absorption costing profits.

Hope you understand.

Provision for Bad debts:

In layman terms, its an amount set aside to help business to face any bad debts without affecting its profits

well coming to your bank reconciliation question, it depends on the uncredited and unpresented cheques amount

for example??two cases!!

 

[wajiman]

for example??two cases!!

you can use that mcq for the example.

 

[parthrocks]

you can use that mcq for the example.

ok wait take this one:

 

[wajiman]

the answer is C. $5000 is credit meaning overdraft. unpresented cheques in this case would be subtracted where as the bank charges would be added.

 

[hardik]

attachments/67-jpg.9769/

is the answer B